30,000 borrowers are being charged for student loans
Published : Friday, 21 February, 2020 at 5:06 PM Count : 213
An estimated 30,000 student loan borrowers thought their personal loan was discharged when they declared bankruptcy many years ago - but their student loan lender, Naivent disagreed.
Naivent continued to collect those debts and now the borrowers are suing the United States Bankruptcy Court as the Eastern District of New York.
“We started these cases in 2016 when there was some confusion in the law about what types of student loans could not be deleted for bankruptcy,” Austin Smith, a lawyer for the plaintiffs in the lawsuit, told Yahoo Finance.
“Since that time, more than a dozen courts across the country have joined us. It is agreed that these types of student loans are repayable and Navent’s increasingly plausible arguments abound Scanned this process, which has tried to prolong and delay.”
Navient wants to stop borrowing already discharged loans and compensate for what has already been paid to borrowers.
The case hit the center of two problems: certain types of student loans were virtually dischargeable in bankruptcy - a myth that slowly began to unravel - and involved negative deceptive behavior that harmed borrowers.
If they win, the attorneys involved in the case estimate that the 30,000 borrowers who are involved in this loan debt will see financial relief and that 250,000 to 500,000 borrowers who have received similar loans from other lenders nationwide can benefit.
This issue was raised more than a decade ago, when a student loaner Chapter I applied for bankruptcy and requested his student loan discharge. The borrower had owed slightly more than $12,000 to Sallie Mae, which today is known as Navient. The court had ordered discharge of those loans in 2009.-Internet